So, here’s a question. When was the last time you checked your insurance policies? Now that we have you wondering, try to remember who your beneficiaries are. Are they still relevant in your life?
Insurance provider, Phoenix Life, recently polled more than 2,000 UK adults, and found that high numbers of policy holders failed to review the recipients of their policies since setting them up. A staggering 62% of life insurance policy holders fell into this category, and similarly 60% for critical illness cover and 61% for income protection. This means the policy holders could end up leaving money to the wrong people!
If your personal circumstances and relationship status haven’t changed, this isn’t won’t be an issue for you. But failure to regularly review your policies can lead to significant issues if you’re divorced, have remarried, had additional children or the intended recipient of the payout has passed away. Figures published from the Office for National Statistics last year showed that there were 679,106 births and 101,669 divorces a year in the UK, demonstrating the change in circumstances and the importance for people to update their financial policies regularly.
The problem appears to stem from a lack of awareness among policy holders – and we get it, once you’ve taken out your policy, why would you think to look at it again?
But it’s vital to ensure that your policy is kept up to date and reviewed often, particularly after certain life events to ensure the correct people benefit from the policies.
If you’d like to discuss how to review your policies or if you have any questions, we’re always happy to help. Our independent financial advisers are always on hand to offer advice. Contact us via this link or call us today on 01639 262222.